It’s About Making Babies!

My Proposal to stimulate the economy:

1) About the credit crisis – halve corporation taxes, or maybe drop them to an 0.5% rate, to restore that cash drain to the economy. Apply to small business income, too. Profits still get taxed when reported as income by stockholders/proprietors/owners. Remove all corporate provisions for reducing or offsetting tax payments Eliminate capital gains taxes, consider ‘capital gains’ to be ordinary income.

2) Consider a flat tax rate for all individual tax payers. Face the fact that expecting ‘rich’ people to pay a larger proportion of their income in taxes hurts all Americans – and rewards class hatred.

3) Introduce a scaled employee tax rate for employers . Scale the current employer contribution for employee taxes from 100% of current rate for employees on the job less than a full calendar year, to 60% for employees employed continuously for ten full years, to 50% for 20 year, to 40% for 30 year, to 30% for employees for 40 years or more. Please encourage employers to retain existing and elder employees.

About the automobile industry.

1) One of the major expenses of the auto industry is designing, testing, certifying, developing, and tooling up to produce new vehicles. Encourage auto companies to introduce “new” models every three years, instead of annually. Encourage rotating introductions among models. Penalize re-labeling existing weight and size class models as ‘new models’.

2) Impose a 50% of value excise or luxury tax on each vehicle sold or traded within three years of manufacture. Impose a 10% excise or luxury tax on vehicles sold or traded from four to five years old.
The purpose of a new vehicle 3-year tax would be
o to reduce environmental impact of short-lived car lives,
o to increase the availability of newer used cars,
o to encourage extended vehicle ownership among buyers.

About the housing industry

1) Scalping, ‘flipping’, and speculative buying are all fine for the economy, but should be seen as the risky ventures they are – and the government should do *nothing* to reduce the risk or to reward people selling residences they have not live in for the previous four (4) years, or have owned less than five (5) years.

2) Impose a luxury or excise “speculation” tax on sale of single or multiple family dwellings, including custom and manufactured housing, within four (4) years of purchase. Scale this tax from 50% for the first two years to 20% for over two years, to zero% after four years of ownership. Allow for waiver where a resident owner applies, and has reasonable cause to sell – change of job, change of health, death among the residents, new felon neighbor within 1,000 feet. But *not* for divorce, kids off to school, etc. – these are signs of speculation.

And, yes, I did send this to my Senators.